Year End Report - beQuoted

Year End Report01-01-2020 – 31-12-2020

Ferroamp Elektronik AB

Ferroamp Elektronik AB Year End Report 2020 of 15

This is a translated version of the Original Report published in Swedish. In case of deviations, the Swedish Report should be considered.

Summary of the period

Significant events during the quarter

▪ Ferroamp makes a large new European systems deal together with Nilar and Indutecc

▪ Ferroamp is an official supplier to the Swedish pavilion at the world exhibit Expo2020 in Dubai

▪ Ferroamp strengthens the management team with Åsa Hedman as Chief Communication Officer and Charlotte Eisner as Chief Commercial Officer

▪ Our award-winning solar string optimizer is now delivered in volume to customers.

Significant events after the end of the period

▪ Ferroamp builds a stronger organization for research and development – strengthens the management team with Carl Heyman as Chief Development Officer

Fourth Quarter 2020▪ Net Sales amounted to 20.074 (18.905) KSEK▪ Profit/loss after financial items amounted to -9.123 (-6.547) KSEK▪ Earnings per share amounted to SEK -0,74 (-0,72) SEK

January – December 2020▪ Net Sales amounted to 76.772 (45.838) KSEK▪ Profit/loss after financial items amounted to -33.138 (-24.203) KSEK▪ Earnings per share amounted to SEK -3,10 (-3,22)

KSEKOct-Dec

2020Oct-Dec

2019Jac-Dec

2020Jan-Dec

2019

Net sales 20 074 18 905 76 772 45 838Profit after financial items -9 123 -6 547 -33 138 -24 203Balance sheet total 144 778 52 761 144 778 52 761Equity ratio (%) 80 58 80 58Earnings per share, SEK -0,74 -0,72 -3,10 -3,22Cash flow from operating activities -4 146 -3 952 -25 790 -29 653



CEO Krister Werner comments on 2020

Ferroamp during growth

During the past year, Ferroamp has showedstrong growth despite some major challenges.2020 our net sales was 167% compared to 2019.We have showed that we are well positioned in acontinuously developing and growing market,where also the demand for sustainable options inthe electrification of the society is constantlyincreasing.

We do important businesses in all segmentsWe have during 2020 followed through withsome important businesses with our partners andcustomers. We have been chosen as the supplierin important projects, both developmentalprojects as well as projects that are undergoingchanges, in order to increase the capacity andgrowth with renewable energy. Exciting

milestones have been reached together withmany of our customers, ranging fromcommunal real-estate companies to housingcooperatives, commercial buildings, but alsosmaller houses and villas. We have alsofollowed through with work to supportnetwork companies in their challenge ofdealing with the large capacity. In theseagreements, we show a wide capability andknowledge on how to solve these issues toour clients and the broader society.

Europe is around the corner The year 2020 was also a year where wecontinued our work to globalize, resulting inmultiple significant businesses happeningoutside Sweden, above all in Holland. Thejourney towards the International market willcontinue throughout 2021, with our mainfocus being Europe. We will improve ourorganization one step at a time in order toprepare for our expansion and ourattendance in the International marketduring the second half of 2021.

Leadership in Technology Furthermore, during the year have weshowed our level of technology, resulting inmultiple recognitions. The most prestigiousrecognition was the InterSolar Award for oursolar string optimizer, being the third timeFerroamp receives this award.

We have also been appointed the officialsupplier, together with some crucial Swedishpartners, for the Swedish booth at Expo 2020in Dubai. We will be delivering the cleverenergy system that controls the solar panelsand energy storage of the building. Thisprestigious mission will give us anopportunity to show the International marketour unique technology in one spot.



Strong performance during 2020 despitechallengesThe year has included many challenges, mainlydue to the pandemic, but also due to changes inthe rule system among our end customers andpartners. The year 2020 started off with highexpectations and strong order entry, which lateron changed to tentative development amongcommercial real-estate, house cooperatives, andthe public benefit as a result of the insecuritiesregarding the financial development. The marketwith smaller real-estate and houses had a stablegrowth during the spring, despite somechallenges we faced with the material supplyfrom Asia. The changes that occurred in the rulesystem, that took office during the summer, forsmaller real-estate to incorporate solar electricityresulted in a slower improvement in our villa-segment during the final months of the year.During the fall we also faced some delivery issuesamong one of our more crucial partners, whichaffected the end of our year in a negative way.

Despite these challenges, the fall was successfulfor Ferroamp, resulting in the best half-yearrevenue ever. This is a testimony of our strengthas an organization and company, we solve theproblems that we are put up against. I am veryproud over the organization and our colleagues,whom continuously deal with these challengeswith grace.

We are building a stronger Ferroamp with acapacity to growDuring the fourth quarter we have continued ourwork to develop and improve. We havecontinuously strengthened our financials duringthe fall. This has been done through new shareissue to enable investments going forward, and atthe same time developed our owner base with afew, long-term owners. We have seen a largeinterest for us, which we are grateful for, as itgives us the opportunity to invest and develop inthe long run.

We continue our growth to an internationalcustomer focused technology company. We havestrengthened our organization and managementby adding new competencies and skills. I feel veryproud and grateful for the team we are buildingmoving forward. We have attracted multiplerecognized, knowledgeable, and merited peopleto our team, and we are continuing this journeyduring 2021, by building a stronger Ferroampthrough tying us to key competencies. In ourmanagement and organization, we have a broadspectrum of experiences, background, andknowledge. Today, our management consists ofan equal split between men and women, a mix Ionly see as a strength.

During the year, an important question has beento improve our capacity to grow and deliver avolume with a margin. We have continued toindustrialize and outsource the production toreach greater volumes. We see an opportunity toimprove our margin moving forward, while thereare some increasing costs due to the pandemic.This includes mainly transportation costs andcomponent access, which affects us negatively.

Good opportunities during 2021I look forward to 2021 with great confidence. Thespring will most likely continue with similarchallenges to what we have already seen due tothe pandemic. We have already shown ourcapability of handling these challenges, andcontinue on with improving ourselves to grow in amore structural and strategic way.

We are well positioned with unique systems in amarket that is undergoing a lot of changes andgrowth. Therefore, with better systematics andstronger organization, are we ready to continueour growth on a journey controlled by us.

Spånga, February 2021

Krister Werner



About Ferroamp

Ferroamp in short

• Founded 2010• Commercial introduction 2016• Office and production in Spånga• IPO in March 2019• 42 employees• ~ 2000 systems installed

Long-term objectives (run-rate 2022)• Net Sales 400 MSEK• Gross Margin 40%• Internationally established on several leading

European markets

Distribution ChannelsFerroamp works closely with integrators, energy advisors and energy companies to create a smooth solution for the end customer.

The Business builds on four main structural driving forces. These are: • Electrical and hybrid vehicles• Solar power• Battery development• Scarcity of effect in society

AwardsFerroamp has won several international competitions. Among others:

• 2020 Intersolar Award Winner

• 2020 Affärsvärldens IPO of the Year –honourable mentioned for share price development, small companies

• 2019 Global Cleantech Top 100

• 2018 PV Magazine: Array Changing Technologies

• 2018 Smarter-E Award Winner

• 2018 VA/Eon E-Prize

Main Products• Energy Cloud (eCloud), software portal for

effect optimization with:• Property surveillance- and analytics tools• Management systems for effect- and

energy optimization (EMS) • Inverter (eHub and eHub XL)• Solar string optimizer (SSO) • Integrated Energy Storage (Power storage and

Home storage)

A new way of thinking – Ferroamp has created the EnergyHub system, bringing a new future-proof way ofintegrating solar power, energy storage and DC loads in one system. With one single inverter, the EnergyHub,new DC devices can be added when required. The bidirectional inverter acts as a bridge between the utility ACgrid and a local DC Nanogrid within the building or between buildings where solar PV, energy storage, andloads are connected, to minimize losses compared to using a traditional system. The system is scalable andcan easily be adapted to all effect needs, from villas to large commercial properties, and together with a DCNanogrid this gives a flexible system that can be expanded to more solar panels, increased load capacity or, ina near future, add a DC charger for an electric vehicle. The result is control and steering of effect, lower gridcosts and faster charging of electric vehicles.

Consumer SegmentsThe Company’s end customers are found in segments for apartment buildings, public housing, commercial properties and villas.



Financial overviewOperating income

The total income for the fourth quarter amounted to 23.347 (21.327) KSEK, where the net sales amounted to 20.074 (18.905) KSEK. In the fourth quarter 2019, we had non-recurring effects of 5 MSEK attributable to the battery container developed together with Vattenfall, as well as the energy storage grant. Adjusted for this, the base business for the fourth quarter increased by 6 MSEK compared to 2019. For the fourth quarter 2020, we saw a slowdown from the solar power industry which, as a result of the new green deduction, is expected to pick up again during the end of first quarter and beginning of second quarter 2021. The total incomes for the full year amounted to 88.205 (55.454) KSEK, where net sales amounted to 76.772 (45.838) KSEK.

Operating costs

Operating costs amounted to 32.222 (27.846) KSEK for the fourth quarter. Raw material & consumables increased to 16.715 (15.858) KSEK. Other external costs amounted to 5.643 (4.920) KSEK. Costs of personnel amounted to 8.763 (6.656) KSEK. For the full year 2020, operating costs amounted to 120.841 (79.529) KSEK. Raw materials & consumables increased to 61.828 (38.296) KSEK.

Raw materials & consumables as a share of net sales improved from 84% during 2019 to 81% during 2020. The freight costs for incoming goods (part of raw materials & consumables) increased significantly during the year as a result of Covid-19. In 2019, raw materials & consumables, excluding freight, amounted to 82%, for the fourth quarter of 2020 the corresponding share was 74%. The assessment is that the cost increase for freight will remain during the first part of 2021.

Other external costs increased, for the full year, to 23.154 (20.606) KSEK. Costs of personnel amounted to 30.866 (19.164) KSEK.

KSEK

For the full year, the cost increase has mainly taken place on the personnel side (+61%) as a result of the expansive investments we make. Our internal work with the costs has resulted in the increase in other external costs (+12%) is significantly lower than the increase in cost of personnel.

EBIT

Earnings before interest and taxes amounted to -8.875 (-6.519) KSEK for the quarter.

Earnings before interest and taxes amounted to -32.636 (-24.075) KSEK for 2020.

During the third quarter a loan from Energimyndigheten, which was obtained in 2015-2016, was corrected as a consequence of an adjusted accounting assessment. The correction is done with a retroactive effect. For the full year 2019, the reassessment results in a net effect on earnings of +464 KSEK.

The loss is according to plan and a consequence of the Company’s investments in expansion and focus on new customers, new markets, industrialisation of the product portfolio and costs for subcontracting the SSO and eHub to external suppliers, as week as strengthening of the work force.



Financial position, liquidity

The company’s cash and cash equivalents amountedto 95.224 KSEK, at the closing of the period,compared to 16.411 KSEK 2019.

Equity amounted to 115.141 KSEK, compared to30.603 KSEK in 2019. The equity ratio was 80%.During the third quarter, a loan fromEnergimyndigheten, obtained in 2015-2016, wasadjusted as a consequence of an adjustedaccounting assessment. This has decreased equitywith 4,7 MSEK and increased long-term liabilitieswith the same amount. The reassessment is donewith retroactive effect.

Per the closing of the period, the total assets were144.778 KSEK, which is an increase compared to thesame period 2019, when total assets amounted to52.761 SEK. The increase is mainly attributable tothe contribution of capital from the share issues.

Fixed assets amounted to 19.172 (12.580) KSEK,where 17.717 (11.383) KSEK refers to intangiblefixed assets (mainly capitalized work).

Inventories amounted to 16.302 (11.178) KSEK atthe closing of the period. The increase is consciouslymade to be able to meet an expected increase indemand from the solar power industry with deliveryof products at the end of the first quarter orbeginning of second quarter 2021.

Cash flow

Cash flow for the quarter amounted to -7.624 (-7.958) KSEK.

Cash flow for the full year amounted to 78.813 (15.037) KSEK.

During 2020, amortizations of loans amounted to 1.675 (3.275) KSEK.

Investment in intangible fixed assets amounted to 3.040 (1.853) KSEK and during the full year 10.792 (7.295) KSEK. The investment is mainly done in SSO 2.0 and XL 1.5. During the second half of the year, the R&D-department has had a strong focus on customer satisfaction, and non-capitalizable work has been spent on improvements supporting this.

Employees

The number of employees at the Company was at the end of the period 42 (28). Compared to 2019, there has been an increase within all functions.



The Ferroamp ShareFerroamp Elektronik AB is since the 22nd of March 2019 listed on Nasdaq First North Growth Market under the short name (FERRO).

The number of outstanding shares is per the end of the year 12.254.092. All shares hold equal voting rights.

Closing price for the quarter was 81,60 SEK/share. Highest price during the period was 84,20 SEK/share, the 29th of December, and lowest price was 51,00 SEK/share, the 28th of October. During 2020, the highest price has been 88,30 SEK/share, the 19th of February, and the lowest price was 41 SEK/share the 17th of March.

Events during the yearDuring the first quarter, the stock warrant program TO1 was subscribed for, which added 1.104.870 new shares and 23,1 million SEK before deductions for issue costs. During the second quarter, warrants were issued for the employees, Series 2020/2023. The Company was awarded during the event IPO of the Year, organized by Affärsvärlden, during the second quarter. During the third quarter, a directed new share issue was done, contributing 102 million SEK excluding costs of issue, and 2.042.349 new shares. The Company has through the new share issue extended its ownership base with long term owners. Several of the institutional investors have since the new share issue further increased their holdings in Ferroamp

Ownership distribution, 31-12-2020

Stängningskurs, SEK

Stock warrant programs

During the quarter no changes has been done in the Company’s stock warrant programs. At the closing of the period the Company has the following three stock warrant programs targeting employees.

FERRO OMX Stockholm 30

OwnerNumber of

sharesShare of votes

and capital

Björn Jernström 1 425 700 11,63%Första AP-Fonden 1 157 670 9,45%Nordea Fonder 1 141 577 9,32%KIC InnoEnergy SE 559 175 4,56%Almi Invest Stockholm AB 500 000 4,08%Åke Rehnman 497 325 4,06%Försäkringsaktiebolaget Avanza Pension 466 767 3,81%Mats Karlström 405 975 3,31%Nordic Cross 361 000 2,95%Andra AP-Fonden 300 000 2,45%Sum, 10 largest owners 6 815 189 55,62%Other shareholders (approx. 6770) 5 438 903 44,38%Sum 12 254 092 100%

Decision made

Number of warrants

Number of shares Exercise periodExercise price,

SEKTarget Group

Series 2018/2021 2018 62 500 62 500 010721-301121 16,00 CEOSeries 2019/2022 2019 185 000 185 000 010322-310522 52,10 EmployeesSeries 2020/2023 2020 69 000 69 000 010623-300623 69,56 EmployeesTotal 316 500 316 500



Profit/loss after financial items Result after financial revenues and costs, but before appropriations and taxes.

Net salesOperating incomes, invoiced expenses, side revenues and revenue adjustments

Balance sheet totalThe Company’s total assets.

Equity ratio (%)Equity as a percentage of total assets.

Earnings per share, SEK Net Income divided by the weighted average number of shares during the period.

Diluted earnings per share, SEKNet Income divided by the weighted average amount of shares and all convertible securities.

Cash flow from operating activitiesCash flow from operating activities including changes in working capital.

Definitions and key figures Financial calendar

Annual Report 29-04-20212020

Interim Report 19-05-20211st Quarter2021

Annual General Meeting 20-05-2021

Interim Report 18-08-20212nd Quarter 2021

Interim Report 10-11-20213rd Quarter 2021

Year End Report 16-02-20222021



Risks and uncertain factors in the operationsThe executive management makes assumptions,assessments and estimates that effects the contentof the financial reports. Actual outcomes may differfrom these assessments and estimates, which isalso implied by the accounting principles. Theobjective of the company’s risk management is toidentify, mitigate, control and limit the risks in thebusiness. The risks can be divided into financial,operational, and external risks. Ferroamp’soperational and external risks consist of, amongother things, operational risks (access to competentpersonnel, quality in production and design,implementation of R&D projects according toplan), market risks (competition, political decisions,demand), intangible risks (patent risks), andfinancial risks (access to financing for expansionand increased costs).

For a detailed description of risk exposure and riskmanagement, see the annual report for 2019,which was published the 23rd of April 2020. Thereport is available on Ferroamp’s website:

http://www.ferroamp.se

External risks – The spread of the Corona virus is aworrying factor, from a global economicperspective. We are closely following thedevelopment and potential implications forFerroamp and the Company’s customers andsuppliers.

Accounting principles

The Interim Report has been prepared in withchapter 9 in the Swedish Annual Accounts Act andthe same accounting principles have been appliedas in the latest annual report.

http://www.ferroamp.se/



Assurance from The Board of DirectorsThe Board of Directors and the Chief Executive Officer offer their assurance that the content of this Interim report constitutes a true and fair view of the company’s operations, financial position, profit/loss and liquidity for the current period.

Stockholm, February 11The Board of Directors

G&W Fondkommission +46(0)8-503 00 050, [email protected] is the Company’s Certified Adviser.

Auditing by auditorsThis report has not been audited by the company’s auditor.

Contact InformationKerstin Wähl Ferroamp Elektronik ABCFO & IR Domnarvsgatan [email protected] SE-163 53 SPÅNGA

www.ferroamp.seOrg nr 556805-7029+46 8 684 333 90

mailto:[email protected]

mailto:[email protected]

http://www.ferroamp.se/



Consolidated Financial Information

Income Statement

KSEKOct-Dec

2020Oct-Dec

2019Jan-Dec

2020Jan-Dec

2019

Net Sales 20 074 18 905 76 772 45 838Capitalized work for own account 2 567 2 454 10 619 9 627Other operating income 706 -32 814 -11Total operating income 23 347 21 327 88 205 55 454

Raw material and consumables -16 715 -15 858 -61 828 -38 296Other external costs -5 643 -4 920 -23 154 -20 606Personnel costs -8 763 -6 656 -30 866 -19 164Depreciation of tangible and intangible fixed assets -982 -390 -4 860 -1 434Other operating costs -118 -22 -134 -29Total operating costs -32 222 -27 846 -120 841 -79 529

EBIT -8 875 -6 519 -32 636 -24 075

Financial items -248 -28 -502 -128Profit/Loss after financial items -9 123 -6 547 -33 138 -24 2030NET INCOME -9 123 -6 547 -33 138 -24 203

Data per ShareOct-Dec

2020Oct-Dec

2019Jan-Dec

2020Jan-Dec

2019

Earnings per share, before and after dilution, SEK

-0,74 -0,72 -3,10 -3,22

Number of outstanding shares, closing of the period

12 254 092 9 106 873 12 254 092 9 106 873

Number of outstanding shares after dilution 12 570 592 10 482 075 12 570 592 10 482 075Weighted average of outstanding shares during the period 12 254 092 9 106 873 10 680 483 7 514 087



Balance Sheet

KSEKDec 31

2020Dec 31

2019De c 31 2020

ASSETS

Intangible fixed assets 17 717 11 383Tangible fixed assets 1 405 1 184Financial assets 50 12Total fixed assets 19 172 12 580Inventory 16 302 11 178Current receivables 14 080 12 592Cash and cash equivalents 95 224 16 411Total current assets 125 606 40 182

TOTAL ASSETS 144 778 52 761

EQUITY AND LIABILITIESRestricted equity 18 730 12 249Unrestricted equity 96 412 18 354Total equity 115 141 30 603

Provision for warranty 1 622 0Provision for warranty 1 622 0

Long-term liabilities, interest bearing 2 444 5 046Total long-term liabilities 2 444 5 046Current liabilities, interest-bearing 2 603 1 675Current liabilities, non-interest-bearing 22 969 15 438Total current liabilities 25 571 17 113

TOTAL EQUITY AND LIABILITIES 144 778 52 761



Cash Flow Statement

KSEKOct-Dec

2020Oct-Dec

2019Jan-Dec

2020Jan-Dec

2019

Cash flow for operating activities after financial items -9 123 -6 648 -33 138 -24 203

Adjustments for non-cash items 2 550 -589 6 428 1 434Paid taxes 394 312 137 155

-6 179 -7 389 -26 573 -22 614

-5 035 -91 -5 123 -5 037Changes in accounts receivables 1 627 -111 -3 902 -1 576Changes in current receivables 1 222 -1 331 2 415 -4 065Changes in accounts payables 6 137 7 093 4 821 7 716Changes in current payables -1 917 -2 586 2 572 -4 077Cash flow from operating activities -4 146 -3 952 -25 790 -29 653

Investments in intangible fixed assets -3 040 -1 853 -10 792 -7 295Investments in tangible fixed assets -140 -262 -569 -1 040Investments in financial assets 0 0 -38 0Cash flow from investing activities -3 180 -2 114 -11 399 -8 334

New share issue, net -222 -2 019 117 677 56 098Borrowing 0 0 0 0Amortization -75 -75 -1 675 -3 275Warranties 0 202 0 202Cash flow from financing activities -297 -1 892 ###### 53 025

CASH FLOW -7 624 -7 958 78 813 15 037

Liquidity opening day of period 102 848 24 368 16 411 1 374LIQUIDITY CLOSING DAY OF PERIOD 95 224 16 411 95 224 16 411

Cash flow from operating activities before changes in working capital

Changes in inventory



Statement of Changes in Equity

KSEK Share capitalDevelopment

fundUnrestricted

equity Total equityEquity 31-12-2018 592 5 358 -2 272 3 678Adjustment as a consequence of the adjusted accounting assessment of financing from Energimyndigheten -5 172 -5 172

Adjusted amount as at 01-01-2019 592 5 358 -7 444 -1 494New share issue 319 60 459 60 778Cost of issue -4 680 -4 680Provisions for funds 5 980 -5 980 0Warrants 202 202Net Income of the period -24 203 -24 203Amount as at 31 Dec 2019 911 11 338 18 354 30 603

KSEK Share capitalDevelopment

fundUnrestricted

equity Total equityEquity 2020-01-01 911 11 338 23 063 35 311Adjustment as a consequence of the adjusted accounting assessment of financing from Energimyndigheten -4 709 -4 709

Amount as at 01-01-2020 911 11 338 18 354 30 603New share issue 315 125 005 125 320Cost of issue -7 643 -7 643Provisions for funds 6 166 -6 166 0Warrants 0 0Net Income of the Period -33 138 -33 138Amount as at 31 Dec 2020 1 225 17 504 96 412 115 141

Year End Report - beQuoted

Documents

Transcript of Year End Report - beQuoted